Correlation Between CFI Holding and New Tech
Can any of the company-specific risk be diversified away by investing in both CFI Holding and New Tech at the same time? Although using a correlation coefficient on its own may not help to predict future stock returns, this module helps to understand the diversifiable risk of combining CFI Holding and New Tech into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between CFI Holding SA and New Tech Venture, you can compare the effects of market volatilities on CFI Holding and New Tech and check how they will diversify away market risk if combined in the same portfolio for a given time horizon. You can also utilize pair trading strategies of matching a long position in CFI Holding with a short position of New Tech. Check out your portfolio center. Please also check ongoing floating volatility patterns of CFI Holding and New Tech.
Diversification Opportunities for CFI Holding and New Tech
0.47 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between CFI and New is 0.47. Overlapping area represents the amount of risk that can be diversified away by holding CFI Holding SA and New Tech Venture in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on New Tech Venture and CFI Holding is a relative statistical measure of the degree to which these equity instruments tend to move together. The correlation coefficient measures the extent to which returns on CFI Holding SA are associated (or correlated) with New Tech. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of New Tech Venture has no effect on the direction of CFI Holding i.e., CFI Holding and New Tech go up and down completely randomly.
Pair Corralation between CFI Holding and New Tech
If you would invest 18.00 in CFI Holding SA on November 1, 2024 and sell it today you would earn a total of 0.00 from holding CFI Holding SA or generate 0.0% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 80.0% |
| Values | Daily Returns |
CFI Holding SA vs. New Tech Venture
Performance |
| Timeline |
| CFI Holding SA |
| New Tech Venture |
CFI Holding and New Tech Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with CFI Holding and New Tech
The main advantage of trading using opposite CFI Holding and New Tech positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if CFI Holding position performs unexpectedly, New Tech can make up some of the losses. Pair trading also minimizes risk from directional movements in the market. For example, if an entire industry or sector drops because of unexpected headlines, the short position in New Tech will offset losses from the drop in New Tech's long position.| CFI Holding vs. Skyline Investment SA | CFI Holding vs. True Games Syndicate | CFI Holding vs. Investment Friends Capital | CFI Holding vs. TEN SQUARE GAMES |
| New Tech vs. Asseco Business Solutions | New Tech vs. Detalion Games SA | New Tech vs. Asseco South Eastern | New Tech vs. CFI Holding SA |
Check out your portfolio center.Note that this page's information should be used as a complementary analysis to find the right mix of equity instruments to add to your existing portfolios or create a brand new portfolio. You can also try the Correlation Analysis module to reduce portfolio risk simply by holding instruments which are not perfectly correlated.
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